Wednesday, 18 April 2012
Investing into gold
Gold is a solid and reliable currency, which from day to day just raised in price. Of course, the price of precious metals is unstable, but, in general, the price of gold tends to be a very significant increase over time. Investing in gold is doing most of the states. As the total value of gold in reserves of any country, it is estimated the welfare and domestic financial conditions. A stable price of gold over the years makes it almost ideal means by which smooth out the impact on the economy of the country's financial crisis. Gold investment is easy to do, it is not only for banks and corporations but also for private investors. Investing into gold is a reasonable step to correct your assets, which in our time are too dependent on the economic disasters and many other factors.
Ways to invest in gold:
Many banks including the biggest ones offer ingots. Typically, the mass of the ingot varies in the range from 1 g to 1 kg, but some banks offer a more massive bars. By the way, the greater the weight of the ingot, the cheaper cost programs. Most often, the bank does not only sell but also buy bullion as you wish. However, the purchase price differs from the unprofitable sales price: the difference is due to the commission (payment for manufacturing, bank fees and VAT). Turning to the cost of VAT makes such an investment is not very profitable. In addition, to pay for the storage of bullion in the vault, of course, if you do not want to put them in a battery house. Ingots can be bought abroad, but to bring them to your country is not interesting because of high customs duties. Gold can also be bought online using a variety of services and online wallets.
Here is their purchase is not subject to VAT, if the coin is an investment, not memorable. Banks can buy domestic and foreign investment coins of different value. Selling coins can be done at any bank, not just the one in which to buy. They can also buy from private individuals and various online auctions. It is often cheaper.
Metallic account is maintained by the bank but not in paper money like $ or £ but in gold. On the bill is written the number of precious metal, for which a customer brought in enough money. When the account is closed, the bank makes money in gold at the current rate. The advantage of metallic account - no need to pay VAT, and can also be of withdrawal at any time. The disadvantage - such accounts are not included in the deposit insurance system, so if bank go bankrupt state won’t pay you a compensation. There are the following operations for metallic accounts :
• opening or completion - the purchase of metal for the fixed rate of enrollment at the expense of metal;
• partial or complete redemption of - write-off of the metal from the account and its sale of fixed rate;
• issuance of the metal in the form of ingots corresponding sample.
The most controversial way of investing into gold. That the artistic value, which is in the products is unlikely to be interested in the potential buyer when you decide to sell the jewelry. It is important to be just how many grams of gold you have to offer. Therefore, the purchase of jewelry is justified only if you use them for other purposes.
Futures and options on gold
Buy a futures contract on gold can be done on a stock exchange through a broker. The contract involves supplying the buyer is not the metal itself, but only calculations at the end of the contract. In other words, if the time of execution of the contract price of gold rose, you win if you fall - therefore lost. Trading in futures and options is profitable, because the warranty provision is low (in fact you can play with "shoulder" - the borrowed, borrowed from the broker funds), broker commissions and stock exchanges are also irrelevant. So buying a futures contract or option - an interesting investment opportunity investment in gold with small commissions. However, this tool is still good in the hands of a professional rather than amateur investor.
Purchase of shares in the global fund
Some brokers provide an opportunity to buy shares of mutual funds investing in gold. Such securities are traded on global exchanges. Assets of funds secured by real gold, which is in the bank vaults. Stock prices do not differ much from the world price of gold, and commissions of brokers and funds are low. However, such services typically offer brokers to wealthy clients, the entry threshold is high enough.
From my personal experience metallic accounts suit me the best. You can buy online gold using bank online access, you don’t need to worry about storing it and keeping it from unwanted visitors. The buy/sell rates for metallic account are way better than for buying real ingots. This approach also eliminate paying VAT. Another advantage you can withdraw your gold from metallic account getting real ingots, usually it is cheaper than buying ingots directly.